YOKOHAMA, JAPAN — November 11, 2026 | WWC ONE MEDIA | Global Business, Automotive & Technology News
One of Japan’s most recognizable automobile manufacturers is facing another major setback as China’s increasingly powerful car industry puts pressure on its sales, profitability and long-term survival strategy.
Nissan Motor Co. is scaling back its vehicle-sales ambitions amid intensifying competition in China, where domestic manufacturers have rapidly gained ground with electric vehicles, plug-in hybrids, advanced automotive technology and aggressive pricing.
The pressure is becoming increasingly difficult to ignore.
According to Nissan’s September 2026 sales report, the Japanese automaker sold just 23,658 vehicles in China during the month, representing a staggering 61.6% decline compared with September 2025.
Its worldwide sales also weakened, falling 10.2% to 249,759 vehicles.
The financial pressure is equally concerning.
Reuters reported on Wednesday, November 11, that Nissan’s operating profit for the July–September quarter plunged 96% year over year to just ¥2.1 billion, significantly below analysts’ expectations.
The latest developments reinforce the challenges facing CEO Ivan Espinosa, who has been attempting to rebuild the company through cost reductions, factory restructuring, a smaller vehicle lineup and a renewed focus on competitiveness.
Bloomberg’s November 11 report highlights the pressure on Nissan’s sales outlook as competition from Chinese manufacturers intensifies.
The company had already reduced its fiscal 2026 global vehicle-sales forecast from 3.3 million to 3.15 million units in August, primarily because of deteriorating conditions in China.
The latest figures suggest that the turnaround remains far from secure.
For Nissan, the challenge is no longer simply selling more vehicles. It is convincing customers that its products can compete against a new generation of Chinese automobiles that are rapidly changing what buyers expect from modern cars.
And with its profitability under pressure, a much bigger question is emerging: Can Nissan rebuild its position before Chinese competitors permanently take away its market share?
Nissan’s China Sales Plunge 61.6% as Global Vehicle Demand Weakens
China has become one of Nissan’s biggest challenges.
The company reported 23,658 vehicle sales in the country in September 2026, down 61.6% from the same month a year earlier.
The decline was considerably worse than its overall global sales performance.
For the April–September period, Nissan’s China sales reached 182,854 vehicles, representing a 45.5% year-over-year decline.
The company’s global sales during the same six-month period fell 11.8% to 1,355,233 vehicles.
The regional breakdown reveals a growing imbalance in Nissan’s international operations.
Japan remained relatively strong, with sales increasing 6.3% during April–September.
North America also recorded 2.1% growth, supported by stronger performance in the United States.
Europe, however, declined 7.8%, while China suffered the steepest contraction.
The numbers suggest that Nissan’s difficulties are concentrated in markets where competition, product preferences and consumer expectations are changing rapidly.
The company has acknowledged that China’s automotive industry is undergoing an increasingly intense transformation.
In its September sales announcement, Nissan said it remained committed to expanding its new-energy vehicle portfolio to meet changing customer demands.
However, its latest performance shows how difficult that transition has become.
Nissan’s Quarterly Operating Profit Collapses 96%
The company’s sales difficulties are being compounded by an alarming decline in profitability.
Reuters reported on November 11 that Nissan’s operating profit for the July–September 2026 quarter fell 96% year over year to ¥2.1 billion, equivalent to approximately US$13.23 million.
The result was significantly below the median analyst forecast of ¥60.1 billion.
Two major factors contributed to the decline.
First, Nissan no longer benefited from a previous reduction in US emissions-related expenses.
Second, an earthquake in southern Japan disrupted operations and affected production.
Despite the disappointing quarterly performance, Nissan maintained its full-year operating-profit forecast of ¥200 billion.
The company pointed to stronger momentum in Japan and North America as reasons for retaining its financial outlook.
Nevertheless, the latest earnings results highlight the difficulty of restoring profitability while the company continues to face weak demand and intense international competition.
Reuters also reported that Nissan recorded a net loss for the first half of its financial year.
This means the company must continue implementing its restructuring programme while attempting to protect sales in its most important markets.
Why Nissan Already Lowered Its 2026 Vehicle-Sales Forecast
Nissan’s sales expectations were revised earlier in the year.
On August 3, 2026, the company reduced its fiscal-year global vehicle-sales forecast from 3.3 million to 3.15 million units.
The adjustment reflected deteriorating market conditions, particularly in China, alongside uncertainty affecting other international operations.
The revised outlook represented a reduction of approximately 150,000 vehicles compared with its original target.
The company’s regional forecast also revealed the extent of the problem.
Its China retail-sales outlook was reduced from 710,000 to 580,000 vehicles.
That represented a reduction of approximately 18.3% from the previous target.
Nissan also lowered its production outlook to approximately 2.8 million vehicles.
The company maintained its full-year financial targets at that time, including ¥13 trillion in revenue and ¥200 billion in operating profit.
These figures are important because they distinguish the already-announced August forecast reduction from Bloomberg’s November 11 reporting.
Investors should look for the latest formal company guidance to establish whether another numerical adjustment has been made.
Chinese Electric Vehicle Manufacturers Are Changing the Rules of the Automotive Industry
Nissan’s difficulties are closely connected to a much larger transformation taking place in China.
For decades, international automakers dominated China’s vehicle market through established brands, manufacturing partnerships and extensive dealership networks.
Japanese companies such as Toyota, Honda and Nissan benefited from strong reputations for reliability, fuel efficiency and long-term vehicle ownership.
But the competitive landscape has changed.
Chinese manufacturers have invested heavily in electric vehicles, battery production, automotive software and intelligent driving technologies.
Companies such as BYD, Geely, Chery, Nio and Xpeng are introducing new models at a rapid pace.
Many are competing aggressively on pricing while offering features that previously appeared mainly in more expensive vehicles.
The speed of product development has also become an important advantage.
Chinese manufacturers can introduce new technologies and refresh vehicle models much faster than many traditional global automakers.
For Nissan, this creates pressure to improve its own electric and hybrid offerings while maintaining competitive prices.
The company’s challenge is particularly significant because China is not simply another international market.
It is the world’s largest automotive market and an increasingly important center for vehicle development, battery technology and global exports.
Chinese Brands Are Taking Market Share From Japanese Automakers
Nissan is not alone in experiencing difficulties.
Toyota and Honda are also facing growing competition in China.
According to industry data reported by Gasgoo, Japanese brands accounted for approximately 10.7% of China’s passenger-vehicle retail market in September 2026.
That was substantially lower than the approximately 23% share recorded five years earlier.
The decline demonstrates how quickly the competitive balance has shifted.
Chinese manufacturers have gained ground through competitive electric vehicles, plug-in hybrids and increasingly sophisticated vehicle technology.
Meanwhile, traditional Japanese automakers have been forced to reconsider their product strategies.
Toyota continues to benefit from its established hybrid business, but its electric-vehicle presence in China remains a challenge.
Honda has also faced major difficulties, with Reuters reporting on November 10 that the company had cut its full-year vehicle-sales forecast by 7% to 3.16 million units, primarily because of weakening Chinese demand.
Honda also announced another substantial round of EV-related restructuring expenses.
The pressure is therefore not limited to Nissan.
It reflects a broader challenge facing established international automakers attempting to compete in a market increasingly shaped by Chinese technology and consumer preferences.
Nissan’s September Production Figures Reveal Another Warning Sign
The company’s production performance offers additional evidence of the challenges it faces.
Nissan reported worldwide production of 222,615 vehicles in September 2026, down 17.8% year over year.
Production in China declined 60.5% to 25,478 vehicles.
For April–September, Chinese production fell 49.3% to 163,192 vehicles.
Global production during the six-month period declined 13.6% to approximately 1.24 million vehicles.
The contraction reflects the difficulties of maintaining production levels when sales demand weakens.
Lower production can help manufacturers avoid accumulating excess inventory, but sustained declines also make it harder to spread factory costs across larger vehicle volumes.
That can put additional pressure on manufacturing efficiency and profitability.
Nissan’s restructuring strategy is partly designed to address this problem.
However, factory closures and production cuts can only improve financial performance if the remaining operations become more competitive.
Can Nissan’s New Electric Vehicle Strategy Save Its Position in China?
Despite the setbacks, Nissan is not abandoning the Chinese market.
The company is attempting to reposition China from a traditional sales destination into a major center for vehicle development and international exports.
Its strategy includes expanding new-energy vehicle offerings and improving the competitiveness of models developed specifically for Chinese consumers.
One example is the Nissan N7, an electric sedan developed through its Chinese operations with Dongfeng.
The updated model was launched in September, with improvements to intelligent driving assistance, comfort and connected services.
The company is also advancing its broader new-energy vehicle lineup.
This strategy reflects a growing recognition that international automakers cannot simply introduce global models into China and expect consumers to accept them.
Chinese buyers increasingly expect competitive pricing, advanced digital features and faster product updates.
Nissan’s future success will depend on how effectively it responds to these expectations.
Nissan’s Re Restructuring Plan Faces Its Biggest Test
CEO Ivan Espinosa has been leading Nissan’s turnaround through a restructuring programme known as Re.
The plan focuses on three major priorities:
1. Reduce operating costs
Nissan is cutting expenses, consolidating manufacturing capacity and streamlining its operations.
2. Improve product competitiveness
The company intends to accelerate vehicle development and concentrate investment on models with stronger market potential.
3. Strengthen strategic partnerships
Nissan is exploring opportunities to cooperate with other manufacturers and technology companies to reduce development expenses and improve efficiency.
Earlier restructuring announcements included plans to reduce the company’s global workforce by approximately 20,000 positions and consolidate production capacity.
The strategy also involves reducing Nissan’s vehicle lineup from 56 models to 45.
These changes are intended to create a smaller and more financially sustainable business.
However, restructuring comes with risks.
Reducing production capacity can lower expenses, but it can also limit the company’s ability to respond quickly if demand improves.
Cutting models can simplify operations, but Nissan must ensure that the remaining vehicles attract enough customers.
The turnaround therefore depends on balancing cost reductions with product investment.
China’s Domestic Car Market Is Also Facing a Slowdown
An important part of the story is that Chinese automakers are not operating in an entirely healthy domestic market.
Reuters reported on November 11 that China’s domestic passenger-vehicle sales are expected to fall below 19 million units in 2026.
If realized, this would be the first time since 2014 that the market falls below that threshold.
Overall vehicle sales, including commercial vehicles, declined 9.2% year over year in October.
Passenger-vehicle exports, however, remain strong.
The contrast is significant.
Chinese manufacturers are increasingly relying on overseas markets to absorb production and sustain growth as domestic demand weakens.
This creates additional pressure on established international automakers.
Chinese companies are no longer competing only for Chinese customers.
They are also expanding into Southeast Asia, Europe, Latin America and other international markets.
The result is a much more competitive global automotive industry.
China’s Export Boom Could Make Nissan’s Problems Even Worse
Chinese manufacturers are rapidly expanding their international presence.
Reuters reported that China’s passenger-vehicle exports reached approximately 932,000 units in October, representing 68.2% growth year over year.
At the same time, domestic passenger-car sales fell 27.3%.
This creates an incentive for Chinese manufacturers to pursue customers overseas.
For Nissan, the implications are considerable.
Chinese manufacturers can now compete with traditional Japanese brands in markets where Nissan previously enjoyed stronger positions.
The pressure extends beyond vehicle pricing.
Chinese companies are also competing in battery technology, software, connectivity and production efficiency.
WWC ONE MEDIA previously examined the growing international challenge in China Exports Over 7 Million Cars as Domestic Sales Plunge 22% — But Is Its Auto Industry Heading for a Global Trade War?.
The report explores how weakening domestic demand and expanding international shipments are reshaping the global automotive industry.
For Japanese automakers, the challenge is increasingly about defending their position in markets they once dominated.
China’s EV Revolution Is Changing What Consumers Expect From Cars
The transformation is not only about the number of vehicles sold.
It is also about what customers expect from modern automobiles.
Chinese manufacturers have invested heavily in electric drivetrains, battery technology and digital vehicle systems.
These investments have helped make electric and plug-in hybrid vehicles increasingly competitive.
According to industry data examined by WWC ONE MEDIA, new-energy vehicles accounted for a record share of China’s September vehicle market.
Read the related report: Over 65% of Cars Sold in China Are Now EVs as the Country Accelerates Its Shift Away From Petrol.
This transformation is particularly challenging for established automakers whose business models were historically built around conventional gasoline-powered vehicles.
Nissan was once considered a pioneer in mass-market electric vehicles through the original Leaf.
But its early advantage has not translated into an uncontested leadership position in today’s EV market.
Chinese companies have moved aggressively into segments that require advanced batteries, connected software and competitive pricing.
The race is now about more than simply producing electric vehicles.
It is about producing the vehicles consumers actually want at prices they are willing to pay.
BYD and Chery Are Expanding Into Markets Once Dominated by Japanese Brands
The international expansion of Chinese manufacturers is increasingly visible across Southeast Asia.
In the Philippines, Chinese brands have gained attention through electric vehicles, plug-in hybrids and competitively priced sport utility vehicles.
BYD has been one of the most prominent examples.
WWC ONE MEDIA previously reported on the company’s Philippine expansion in BYD Philippines Nearly Doubles Sales to 28,399 Units — But One Type of Vehicle Is Driving Almost 80% of the Boom.
The company’s local performance illustrates how Chinese automotive brands are increasingly competing in markets where Japanese manufacturers have traditionally maintained strong customer loyalty.
However, the long-term contest will depend on more than initial vehicle sales.
Reliability, spare-parts availability, maintenance costs, dealership coverage and resale values will all influence whether customers remain loyal to these brands.
For Nissan, the challenge is to defend its established reputation while offering vehicles capable of matching the technology and value of its newer competitors.
Could Nissan Become a Smaller Company to Survive?
The company’s restructuring suggests that management is prepared to make difficult decisions.
Nissan has already announced manufacturing reductions, job cuts and a more focused vehicle lineup.
The objective is to eliminate excess costs and concentrate investment on markets and models with stronger commercial potential.
The company is also exploring ways to improve factory utilization through partnerships.
In Europe, Nissan has considered whether its Sunderland manufacturing facility could produce vehicles for other manufacturers, including Chinese automakers.
The discussions illustrate how traditional carmakers may need to rethink their relationships with competitors to preserve manufacturing capacity.
WWC ONE MEDIA previously examined Nissan’s manufacturing challenges in Nissan Considers Building Chinese Cars at Its UK Factory as Sunderland Faces a Major Restructuring.
A smaller and more efficient Nissan could potentially become more profitable.
But the company must avoid shrinking so aggressively that it loses the scale needed to compete globally.
The challenge is to reduce unnecessary costs without abandoning the markets and technologies necessary for long-term growth.
Five Things Investors Should Watch as Nissan Attempts Its Turnaround
Nissan’s next phase will depend on several important developments.
1. China sales recovery
Investors will want to see whether Nissan can stabilize its Chinese operations and regain customer interest.
2. New electric and hybrid models
The company’s ability to introduce competitive products will determine whether it can recover market share.
3. Operating profitability
The collapse in quarterly operating profit demonstrates how vulnerable Nissan remains to changes in costs and production.
4. Restructuring progress
Factory consolidation and workforce reductions must translate into sustainable financial improvements.
5. Global competition
Chinese manufacturers are expanding into overseas markets, making it increasingly difficult for Nissan to rely on its traditional competitive advantages.
The next few quarters will provide important evidence about whether the Re strategy is working.
The Bigger Question: Can Nissan Survive China’s Automotive Revolution?
Nissan helped shape the modern global automotive industry.
Its vehicles have become familiar across Asia, Europe, North America and other international markets.
But the company now faces a different competitive environment.
Chinese automakers are developing vehicles faster, expanding their electric-vehicle portfolios and challenging traditional brands on both price and technology.
Nissan’s September sales decline and November profit collapse demonstrate how difficult the transition has become.
Its existing brand recognition and international manufacturing network remain valuable assets.
However, those advantages will not guarantee future success.
The company must prove that it can develop products that match changing consumer expectations while maintaining competitive costs and sustainable profitability.
For Japan’s automotive industry, the stakes extend beyond one manufacturer.
The struggle reflects a broader shift in global manufacturing power as China becomes an increasingly influential force in electric vehicles and international automotive exports.
Nissan has already reduced its sales ambitions, reorganized its factories and launched an aggressive turnaround strategy. But as Chinese EV manufacturers continue expanding beyond their home market, will Japan’s automotive giant find a way to reclaim its lost momentum—or is the global auto industry about to witness another historic shift in power?
